The new simplified tax regime will impose few restrictions on
the type of asset schemes can invest in, although there will be tax
charges in relation to certain types of investment – for
example, those aimed at taking value out of the pension scheme.
There will also be tax consequences of investing in taxable
property which includes residential property and personal chattels
(see
RPSM07109000). There will be a
single set of investment rules for tax purposes, applying to all
types of scheme, although schemes will of course remain subject to
any relevant Department for Work and Pensions, Financial Services
Authority or other general restrictions outside tax law.
General trust law requires the trustees to act prudently,
conscientiously and honestly when making decisions in respect of
the scheme. Trustees should at all times act in the best interests
of scheme members in their capacity as trustees and not as
employees, shareholders etc. For further information and guidance
trustees should seek independent financial advice.
| Glossary ( RPSM20000000) |
